INDUSTRY PROFILE Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. Nationalisation:- By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. At the same time, it has emerged as a large employer, and a debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. A second dose of nationalisation of 6 more commercial banks followed 1
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INDUSTRY PROFILE
Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.
Nationalisation:-By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. At the same time, it has emerged as a large employer, and a debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second dose of nationalisation, the GOI controlled around 91% of the banking business of India. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.
Liberalisation:-
In the early 1990s the then Narsimha Rao government embarked on a policy of liberalisation and gave licenses to a small number of private banks, which came to be known as New Generation tech-savvy banks, which included banks such as Global Trust Bank (the first of such new generation banks to be set up)which later amalgamated with Oriental Bank of Commerce, UTI Bank(now re-named as Axis Bank), ICICI Bank. This move, along with the rapid growth in the economy of India, kick-started the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 49% with some restrictions. The
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new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more.
Current Situation:-Currently (2007), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true.
With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.
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COMPANY PROFILE
STRONG NATIONAL NETWORK
HDFC
BANK
March 2006 March 2007 March 2008
Cities 228 316 327
Branches 535 684 761
ATMs 1323 1605 1977
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Colour Coding of files in HDFC Bank:-
DEPARTMENT
Welcome Desk
Personal Banker
Teller
Relationship Manager
Branch Manager
Demat
Others
In the HDFC BANK each department has their different color coding
Apply on the different file. Due to this everyone aware about their
Particular color file which is coding on it and they save their valuable
Time. It is a part of Kaizen and also included in the system of the Five
‘S’. Logic behind it that, the color coding are always differentiate the
Things from the similar one.
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Shareholder Pattern:-
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The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.
PROMOTORS
BUSINESS FOCUS
CAPITAL STRUCTURE
CBOP & TIMES BANK AMALGAMATION
DISTRIBUTION NETWORK
MANAGEMENT
TECHNOLOGY
BUSINESSES
RATINGS
PROMOTORS
HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.
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BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.
CAPITAL STRUCTURE
The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about 17.6% of the equity is held by the ADS Depository (in respect of the bank's American.
Depository Shares (ADS) Issue. Roughly 28% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.
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CBOP & TIMES BANK AMALGAMATION
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On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP.
The merged entity will have a strong deposit base of around Rs. 1,22,000 crore and net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower.
In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.
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DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1229 branches spread over 444 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and active member base.
The Bank also has a network of about over 2526 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
MANAGEMENT
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor was a Deputy Governor of the Reserve Bank of India.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.
BUSINESSES
HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments:
Wholesale Banking Services
The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional
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services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.
Retail Banking Services
The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2008, the bank had a total card base (debit and credit cards) of 9.1 million. The Bank is also one of the leading players in the “merchant acquiring” business with over 61,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team.To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.
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RATINGS
Credit Rating
The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment risk". CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "AAA (ind)" rating to the Bank's deposit programme, with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors are very high".
The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments.
Corporate Governance Rating
The bank was one of the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest.
Awards and Achievements - Banking Services
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". We realised that only a single-minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal.
It is extremely gratifying that our efforts towards providing customer convenience have been appreciated both nationally and internationally.
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2009
Euro money Awards 2009'Best Bank in India'
Economic Times Brand Equity & Nielsen Research annual survey 2009Most Trusted Brand - Runner Up
Asia Money 2009 Awards 'Best Domestic Bank in India'
IBA Banking Technology Awards 2009'Best IT Governance Award - Runner up'
Global Finance Award 'Best Trade Finance Bank in India for 2009
IDRBT Banking Technology Excellence Award 2008'Best IT Governance and Value Delivery'
Asian Banker Excellence in Retail Financial Services 'Asian Banker Best Retail Bank in India Award 2009 '
2008
Finance Asia Country Awards for Achievement 2008 'Best Bank and Best Cash Management Bank'
CNN-IBN'Indian of the Year (Business)'
Nasscom IT User Award 2008'Best IT Adoption in the Banking Sector'
Business India 'Best Bank 2008'
Forbes Asia Fab 50 companies in Asia Pacific
Asian Banker Excellence in Retail Financial Services Best Retail Bank 2008
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Asia money Best local Cash Management Bank Award voted by Corporate
Microsoft & Indian Express Group Security Strategist Award 2008
World Trade Center Award of honourFor outstanding contribution to international trade services.
Business Today-Monitor Group surveyOne of India's "Most Innovative Companies"
Financial Express-Ernst & Young AwardBest Bank Award in the Private Sector category
Global HR Excellence Awards - Asia Pacific HRM Congress:'Employer Brand of the Year 2007 -2008' Award - First Runner up, & many more
Business Today'Best Bank' Award
2007
Dun & Bradstreet – American Express Corporate Best Bank Award 2007'Corporate Best Bank' Award
The Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Awards 2007'Best Corporate Social Responsibility Practice' Award
Outlook Money & NDTV ProfitBest Bank Award in the Private sector category.
The Asian Banker Excellence in Retail Financial Services AwardsBest Retail Bank in India
Asian BankerOur Managing Director Aditya Puri wins the Leadership Achievement Award for India
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CAREER
Join the winning team
HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined to accomplish the vision of becoming a world-class Indian bank. Our business philosophy is based on four core values - Customer Focus, Operational Excellence, Product Leadership and People. We believe that the ultimate identity and success of our bank will reside in the exceptional quality of our people and their extraordinary efforts. For this reason, we are committed to hiring, developing, motivating and retaining the best people in the industry.
Mission and Business Strategy
Our mission is to be "a World Class Indian Bank", benchmarking ourselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. We are committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance.
Our business strategy emphasizes the following:
Increase our market share in India’s expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service.
Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs. Maintain our current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract our targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and
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services that reduce our cost of funds. Focus on high earnings growth with low volatility.
SECURITY
Be aware of frauds
Security Tips
Security measures
Be aware of frauds
PhishingPhishing is an act undertaken by fraudsters to gain your private and sensitive information whereby emails sent out appear to be sent by your bank. Money Mules By phishing or other means of customer identity theft, the fraudster harvests customer Net Banking credentials i.e. customer ID and IPIN with a motive to transfer money from customer account to another account holder.
Security Tips Internet BankingInternet Banking service allows convenience of anytime anywhere banking. Observe security while online banking to protect yourselves from being de-frauded.
Online Shopping / PaymentsOnline shopping has changed the way you shop without having to visit the store or make payments without carrying cash. Follow simple security tips to protect your money while online shopping or making online payments.Computer security Computers are the primary means for storing, processing and transmitting information that could be sensitive to you or may have financial bearing e.g. your internet banking Customer IDs, IPINs, Debit/Credit Cards numbers etc. Secure your sensitive information by securing your computer.Internet Browsing
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Information stored in the computers is available and accessible across the world through Internet. Be aware of security while browsing the Internet.Email SecurityEmail has been most cost effective and convenient way of communication across the globe. Be aware of security while using Email.
Security measures
Internet Banking System Security: Login Security: Access to customer's NetBanking account is granted using a Customer ID and IPIN (internet banking password) that is privy to the customer. Without a valid IPIN corresponding to the customer ID, access to customer account cannot be gained by anyone. The customer's NetBanking service is revoked if not in use by customer for more than 180 days for security. IPIN Security: IPIN is randomly generated by the system and directly printed on tamper proof media such that it is not accessible by anyone other than the customer. Customer is forced to change his IPIN such upon first login such that customer is assured that IPIN is not compromised before delivery. IPIN is stored by the Bank by use of encryption technology such that it is not accessible to anyone including the system administrator.
Session Security: Access to the customers are provided through a secure webpage that encrypts the session between the customer's computer and the webpage using 128-bit encryption so that the communication between the customer's computers and the webpage cannot be intercepted by anyone over the internet. HDFC Bank systems time out the customer's login sessions to his Net Banking account upon prolonged inactivity for protection against misuse. Digital Certificate: The webpage of the HDFC Bank's internet banking server is identified by means of a digital certificate provided by Verisign to ensure its customer that they are on the correct site and protect themselves from revealing their confidential account information on some fake website. Virtual keyboard: Customer can use the feature of Virtual Keyboard while logging into his NetBanking account. This protects the users IPIN from being compromised by keylogger software installed on untrusted/shared computers e.g cyber cafes.
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Insta Alert: The Bank has InstaAlert service to send SMS/ Email alert to the customer upon registration for defined transaction denominations and while adding beneficiary/ies for carrying out Third Party Transfer transactions.
Security Solutions: All banking systems are secured using state-of-the-art security solutions acknowledged world wide viz, firewalls, intrusion detection systems, intrusion prevention systems, anti-malware systems to extend secure banking services to our customers.
Security Teams: The Bank has robust processes, skilled people and competent service providers who monitor the security of our systems round the clock.
CITIZENS CHARTER
Our Citizen's Charter offers relevant information about the products, facilities and services we provide. Customers can also find out about the time norms for various banking transactions, our policy on customer information, and the process followed for redressal of grievances. Types of Deposit Accounts Account Opening & Operation of Deposit Account Nomination Facility Interest Payments Minor's Accounts Account of Illiterate / Blind Person Addition or Deletion of the name/s of Joint A/c holders Customer Information Secrecy of Customers Premature Withdrawal of Term Deposit Renewal of Term Deposit Advance against Deposits Deceased Deposit Accounts Insurance Cover for Deposits Stop Payment Facility
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Dormant Accounts Standing Instructions Direct Debit Safe Deposit Lockers Redressal of complaints & grievances Service Charges Exchange of Soiled/ Mutilated notes ATM Card / Debit Card Hot listing Pension Accounts No Frills Account Foreign Exchange Services Time Norms for Various Banking Transactions Cheque Collection Policy
HDFC Bank recognizes the importance of good corporate governance, which is generally accepted as a key factor in attaining fairness for all stakeholders and achieving organizational efficiency. This Corporate Governance Policy, therefore, is established to provide a direction and framework for managing and monitoring the bank in accordance with the principles of good corporate governance.
Code of Corporate Governance The Bank believes in adopting and adhering to best recognized corporate governance practices and continuously benchmarking itself against each such practice. The Bank understands and respects its fiduciary role and responsibility to shareholders and strives hard to meet their expectations. The Bank believes that best board practices, transparent disclosures and shareholder empowerment are necessary for creating shareholder value.The Bank has infused the philosophy of corporate governance into all its activities. The philosophy on corporate governance is an important tool for shareholder protection and maximisation of their long term values. The cardinal principles such as independence, accountability, responsibility, transparency, fair and timely disclosures, credibility etc. serve as the means for implementing the philosophy of corporate governance in letter and spirit.
Corporate Governance Rating The bank was amongst the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides
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an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating for the second consecutive year, which indicates that the bank's capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest.Composition of the Board The Composition of the Board of Directors of the Bank is governed by the Companies Act, 1956, the Banking Regulation Act, 1949 and the listing requirements of the Indian Stock Exchanges where securities issued by the Bank are listed. The Board has strength of 12 Directors as on March 31, 2008. All Directors other than Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar are non-executive directors. The Bank has five independent directors and seven non-independent directors. The Board consists of eminent persons with considerable professional expertise and experience in banking, finance, agriculture, small scale industries and other related fields.
Profiles of Directors Mr. Jagdish Kapoor
Mr. Jagdish Capoor holds a Masters degree in Commerce and is a Fellow member of Indian Institute of Banking and Finance. Prior to joining the Bank, Mr. Capoor was the Deputy Governor of the Reserve Bank of India. He retired as Deputy Governor of Reserve Bank of India after serving for 39 years. While with Reserve Bank of India, Mr. Capoor was the Chairman of the Deposit Insurance and Credit Guarantee Corporation of India and Bharatiya Reserve Bank Note Mudran Limited. He also served on the boards of Export Import Bank of India, National Housing Bank, National Bank for Agriculture and Rural Development (NABARD) and State Bank of India.Mr. Aditya Puri
Mr. Aditya Puri holds a Bachelors degree in Commerce from Punjab University and is an associate member of the Institute of Chartered Accountants of India. Mr. Aditya Puri has been the Managing Director of the Bank since September 1994. He has about 35 years of banking experience in India and abroad. Prior to joining the Bank, Mr. Puri was the Chief Executive Officer of Citibank, Malaysia from 1992 to 1994.Mr. Puri holds 3, 37,953 equity shares in the Bank as on March 31, 2008.
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Mr. Keki M. Mistry
Mr. Keki Mistry holds a Bachelor of Commerce degree in Advanced Accountancy and Auditing and is also a Chartered Accountant. He was actively involved in the setting up of several HDFC group companies including HDFC Bank. Mr. Mistry has been deputed on consultancy assignments for the Commonwealth Development Corporation (CDC) in Thailand, Mauritius, Caribbean Islands and Jamaica. He has also worked as a consultant for the Mauritius Housing Company and Asian Development Bank. Mr. Vineet Jain
Mr. Vineet Jain holds a Bachelor of Science degree and a degree in International Business Administration - Marketing.Mr. Jain is Managing Director of Bennett, Coleman & Co. Limited and Director in Times Infotainment Media Limited, Entertainment Network (India) Limited, Optimal Media Solutions Limited, The Press Trust of India Limited, Times Internet Limited, Times Global Broadcasting Company Limited, Bharat Nidhi Limited, Times Journal India Private Limited, Worldwide Media Private Limited, Zoom Entertainment Network Private Limited (formerly, Bhavani Shares & Stock Private Limited), Times Centre for Media Studies and S P Jain Foundation. He is a Trustee of Shahu Jain Charitable Society, The Shahu Jain Trust and The Times Research Foundation. He is a member of the Managing Committee of Times Foundation and Chairman of the Managing Committee of TheMrs. Renu Karnad
Mrs. Renu Karnad is a Law graduate and also holds a Masters Degree in Economics from Delhi University.Mrs. Karnad is a Joint Managing Director of Housing Development Finance Corporation Limited and Chairperson of HDFC Venture Capital Limited, HDFC Property Ventures Limited and Home Loan Services India Private Limited. She is a Director of HDFC Asset Management Company Limited, GRUH Finance Limited, HDFC Realty Limited, Credit Information Bureau (India) Limited, HDFC General Insurance Company Limited, ICI India Mrs. Karnad is liable to retire by rotation and being eligible, offers herself for re-appointment at the ensuing Annual General Meeting.
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Mrs. Karnad holds 58,924 equity shares in the Bank as on March 31, 2008.Mr. Arvind Pande
Mr. Arvind Pande holds a Bachelor of Science degree from Allahabad University and a B.A. (Hons.) and M.A. (Economics) degree from Cambridge University, U.K. He started his career in Indian Administrative Services and has held various responsible positions in the Government of India. He was a Joint Secretary to the Prime Minister of India for Economics, Science and Technology issues. Mr. Pande has served as a Director, Department of Economic Affairs, Ministry of Finance, and Government of India and has dealt with World Bank aided projects. Mr. Pande has also served on the Board of Steel Authority of India Limited as its Chairman and Chief Executive Officer (CEO).
Mr. Ashim Samanta
Mr. Ashim Samanta holds a Bachelor of Commerce degree from University of Bombay and has wide and extensive experience in business for nearly 29 years. He has vast experience in the field of bulk drugs and pharmaceutical formulations. He is a Director of Samanta Organics Private Limited, Nautilus Trading & Leasing Private Limited, Ashish Rang Udyog Private Limited, Samanta Movies Private Limited and Shakti Cine Studios Private Limited. Mr. Samanta has also been engaged in setting up and running of film editing and dubbing studio.Mr. Samanta holds 600 equity shares in the Bank as on March 31, 2008.
Mr.C M Vasudev
Mr. C. M. Vasudev holds a Masters Degree in Economics and Physics. He joined the Indian Administrative Services in 1966. Mr. Vasudev has worked as Executive Director of World Bank representing India, Bangladesh, Sri Lanka and Bhutan. Mr. Vasudev has extensive experience of working at policy making levels in the financial sector and was responsible for laying down policies and oversight of management. He chaired World Bank’s committee on development effectiveness with responsibility of ensuring effectiveness of World Bank’s operations. Mr. Vasudev has also worked as Secretary, Ministry of Finance and has undertaken various assignments viz. Secretary, Department of Economic Affairs, Department of Expenditure, Department of Banking and was Additional Secretary Budget with
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responsibility for framing budget of Government and monitoring its implementation. He has also worked as Joint Secretary of Ministry of Commerce with responsibility for state trading, trade policy including interface with WTO.Mr. Vasudev does not hold any equity shares in the Bank as on March 31, 2008.Mr. Gautam Divan
Mr. Gautam Divan holds a Bachelors degree in Commerce and is a Fellow Member of the Institute of Chartered Accountants of India.Mr. Divan is a partner in Rahul Gautam Divan & Associates, Chartered Accountants. Mr. Divan has wide experience in financial and taxation planning of individuals and limited companies and auditing accounts of large public limited companies and nationalised Banks. Mr. Divan enjoys substantial experience in structuring overseas investments to and from India. Mr. Divan does not hold any equity shares in the Bank as on March 31, 2008.
Dr. Pandit Palande
Dr. Pandit Palande has a Ph.D. degree in Business Administration and has completed an Advance Course in Management from Oxford University and the Warwick University in UK. Dr. Palande has worked as a Director of School of Commerce and Management for 15 years in Yashwantrao Chavan Maharashtra Open University (YCMOU). At present, Dr. Palande is Pro-Vice Chancellor of YCMOU.Dr. Palande does not hold any equity shares in the Bank on March 31, 2008 as well as on the date of his appointment.
Mr. Paresh Sukthankar
Mr. Paresh Sukthankar was appointed as additional Director on October 12, 2007 pursuant to Section 260 of the Companies Act, 1956, subject to the approval of the Reserve Bank of India (RBI). He was also appointed as Executive Director for a period of three years with effect from 12th October 2007 subject to approvals from the shareholders and RBI. Effective December 10, 2007, the Mr. Sukthankar is neither a director on the Board of any other company nor a member and chairman of any committee of the Board of Directors.Mr. Sukthankar holds 1,59,656 equity shares in the Bank as on March 31, 2008.
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Mr. Harish Engineer
Mr. Harish Engineer was appointed as additional Director on October 12, 2007 pursuant to Section 260 of the Companies Act, 1956, subject to the approval of the Reserve Bank of India (RBI). He was also appointed as Executive Director for a period of three years with effect from 12th October 2007 subject to approvals from the shareholders and RBI. Effective December 10, 2007, the shareholders have given their consent in this regard by passing resolution through postal ballot while approval from RBI is awaited.Mr. Engineer is neither a director on the Board of any other company nor a member and chairman of any committee of the Board of Directors. He is member of the Board of Boston Analytics, Boston (USA).Mr. Engineer holds 64,000 equity shares in the Bank as on March 31, 2008.
Board CommitteesThe Board has constituted committees of Directors to take informed decisions in the best interest of the Bank. These committees monitor the activities falling within their terms of reference. Various committees of the Board were reconstituted during the year due to induction of additional Director namely; Mr. Pandit Palande. The Board's Committees are as follows:The Board's Committees are as follows:
Audit and Compliance CommitteeThe Audit and Compliance Committee of the Bank is chaired by Mr. Arvind Pande. The other members of the Committee are Mr. Ashim Samanta, Mr. C. M. Vasudev, Mr. Gautam Divan and Dr. Pandit Palande. Dr. Pandit Palande was inducted as member of the Committee w.e.f. May 17, 2007. All the members of the Committee are independent directors and Mr. Gautam Divan is a financial expert.The Committee met 7 (seven) times during the year.
The terms of reference of the Audit Committee are in accordance with Clause 49 of the Listing Agreement entered into with the Stock Exchanges in India, and inter alia include the following: Overseeing the Bank's financial reporting process and ensuring correct, adequate and credible disclosure of financial information. Recommending appointment and removal of external auditors and fixing of their fees.Reviewing with management the annual financial statements before submission to the Board with special emphasis on accounting policies and practices, compliance with accounting standards and other legal requirements concerning financial statements.Reviewing the adequacy of the Audit and Compliance functions, including their policies, procedures, techniques and other regulatory requirements, and
23
Any other terms of reference as may be included from time to time in clause 49 of the listing agreement.The Board has also adopted a charter for the audit committee in connection with certain United States regulatory standards as the Bank's securities are also listed on New York Stock Exchange.
Compensation CommitteeThe Compensation Committee reviews the overall compensation structure and policies of the Bank with a view to attract, retain and motivate employees, consider grant of stock options to employees, reviewing compensation levels of the Bank's employees vis-à-vis other banks and industry in general. The Bank's compensation policy is to provide a fair and consistent basis for motivating and rewarding employees appropriately according to their job / role size, performance, contribution, skill and competence.Mr. Jagdish Capoor, Mr. Ashim Samanta, Mr. Gautam Divan and Dr. Pandit Palande are the members of the Committee.Dr. Pandit Palande was inducted as member of the Committee w.e.f. May 17, 2007. The Committee is chaired by Mr. Jagdish Capoor. All members of the Committee other than Mr. Capoor are independent directors. The Committee met 3 (three) times during the year.
Investors' Grievance (SHARE) CommitteeThe Committee approves and monitors transfer, transmission, splitting and consolidation of shares and bonds and allotment of shares to the employees pursuant to Employees Stock Option Scheme. The Committee also monitors redressal of complaints from shareholders relating to transfer of shares, non-receipt of Annual Report, dividends etc.The Committee consists of Mr. Jagdish Capoor, Mr. Aditya Puri and Mr. Gautam Divan. The Committee is chaired by Mr. Capoor. The Committee met 11 times during the year. The powers to approve share transfers and dematerialisation requests have been delegated to executives of the Bank to avoid delays that may arise due to non-availability of the members of the Committee. As on March 31, 2008, 43 instruments of transfer representing 3871 shares were pending and since then the same have been processed. The details of the transfers are reported to the Board of Directors from time to time. During the year, the Bank received 142 complaints from shareholders, which have been attended to.The Committee met 11 (eleven) times during the year.
Risk Monitoring CommitteeThe committee has been formed as per the guidelines of Reserve Bank of India on the Asset Liability Management / Risk Management Systems. The Committee develops Bank's credit and market risk policies and procedures, verify adherence to various risk parameters and prudential limits for treasury operations and reviews its risk monitoring system. The committee also ensures that the Bank's credit exposure to any one group or industry does not exceed the internally set limits and that the risk is prudentially diversified.
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The Committee consists of Mrs. Renu Karnad, Mr. Aditya Puri and Mr. C. M. Vasudev and is chaired by Mrs. Renu Karnad. The Committee met 5 (five) times during the year.
Credit Approval CommitteeThe Credit Approval Committee approves credit exposures, which are beyond the powers delegated to executives of the Bank. This facilitates quick response to the needs of the customers and speedy disbursement of loans. The Committee consists of Mr. Jagdish Capoor, Mr. Aditya Puri, Mr. Keki Mistry and Mr. Gautam Divan. The Committee is chaired by Mr. Capoor.The Committee met 2 (two) times during the year.
The Premises CommitteeThe Premises Committee approves purchases and leasing of premises for the use of Bank's branches, back offices, ATMs and residence of executives in accordance with the guidelines laid down by the Board. The committee consists of Mr. Aditya Puri, Mr. Ashim Samanta, Mrs. Renu Karnad and Dr. Pandit Palande. Dr. Pandit Palande was inducted as member of the Committee w.e.f. May 17, 2007. The Committee is chaired by Mrs. Renu Karnad.The Committee met 4 (four) times during the year.
Nomination CommitteeThe Bank has constituted a Nomination Committee for recommending the appointment of independent / non-executive directors on the Board of the Bank. The Nomination Committee scrutinises the nominations for independent / non-executive directors with reference to their qualifications and experience. For identifying ‘fit and proper' persons, the Committee adopts the following criteria to assess competency of the persons nominated: Academic qualifications, previous experience, track record, and
Integrity of the candidates.For assessing the integrity and suitability, features like criminal records, financial position, civil actions undertaken to pursue personal debts, refusal of admission to and expulsion from professional bodies, sanctions applied by regulators or similar bodies and previous questionable business practice are considered.The members of the Committee are Mr. Arvind Pande, Mr. Ashim Samanta and Dr. Pandit Palande. Dr. Pandit Palande was inducted as member of the Committee w.e.f. May 17, 2007. The Committee is chaired by Mr. Arvind Pande. All the members of the Committee are independent directors. The Committee met 2 (two) times during the year.
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Fraud Monitoring CommitteePursuant to the directions of the Reserve Bank of India, the Bank has constituted a Fraud Monitoring Committee, exclusively dedicated to the monitoring and following up of cases of fraud. Amounting to Rs.1 crore and above. The objective of this Committee is the effective detection of frauds and immediate reporting thereof to regulatory and enforcement agencies and actions taken against the perpetrators of frauds. The terms of reference of the Committee are as under:
Identify the systemic lacunae, if any that facilitated perpetration of the fraud and put in place measures to plug the same.
Identify the reasons for delay in detection, if any, reporting to top management of the Bank and RBI.
Monitor progress of CBI / police investigation and recovery position. Ensure that staff accountability is examined at all levels in all the cases of
frauds and staff side action, if required, is completed quickly without loss of time.
Review the efficacy of the remedial action taken to prevent recurrence of frauds, such as strengthening of internal controls.
Put in place other measures as may be considered relevant to strengthen preventive measures against frauds.
The members of the Committee are Mr. Jagdish Capoor, Mr. Aditya Puri, Mr. Keki Mistry and Mr. Arvind Pande. The Committee is chaired by Mr. Jagdish Capoor. The Committee met 4 (four) times during the year.
Customer Service CommitteeThe Committee monitors the quality of services rendered to the customers and also ensures implementation of directives received from RBI in this regard. The terms of reference of the Committee are to formulate comprehensive deposit policy incorporating the issues arising out of death of a depositor for operations of his account, the product approval process, the annual survey of depositor satisfaction and the triennial audit of such services. The members of the Committee are Mr. Keki Mistry, Mr. Arvind Pande and Dr. Pandit Palande. Dr. Pandit Palande was inducted as member of the Committee w.e.f. May 17, 2007. The Committee met 4 (four) times during the year.
Ownership Rights Certain rights that a shareholder in a company enjoys:
To transfer the shares. To receive the share certificates upon transfer within the stipulated period
prescribed in the Listing Agreement. To receive notice of general meetings, annual report, the balance sheet and
profit and loss account and the auditors' report. To appoint proxy to attend and vote at the general meetings. In case the
member is a body corporate, to appoint a representative to attend and vote at the general meetings of the company on its behalf.
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To attend and speak in person, at general meetings. Proxy cannot vote on show of hands but can vote on a poll.
To vote at the general meeting on show of hands wherein every shareholder has one vote. In case of vote on poll, the number of votes of a shareholder is proportionate to the number of equity shares held by him.
As per Banking Regulation Act, 1949, the voting rights on a poll of a shareholder of a banking company are capped at 10% of the total voting rights of all the shareholders of the banking company.
To demand poll along with other shareholder(s) who collectively hold 5,000 shares or are not less than 1/10th of the total voting power in respect of any resolution.
To requisition an extraordinary general meeting of any company by shareholders who collectively hold not less then 1/10th of the total paid-up capital of the company.
To move amendments to resolutions proposed at meetings. To receive dividend and other corporate benefits like rights, bonus shares
etc. as and when declared / announced. To inspect various registers of the company. To inspect the minute books of general meetings and to receive copies
thereof after complying with the procedure prescribed in the Companies Act, 1956.
To appoint or remove director(s) and auditor(s) and thus participate in the management through them.
To proceed against the company by way of civil or criminal proceedings. To apply for the winding-up of the company. To receive the residual proceeds upon winding up of a company. The rights mentioned above are prescribed in the Companies Act, 1956 and
Banking Regulation Act, 1949, wherever applicable, and should be followed only after careful reading of the relevant sections. These rights are not necessarily absolute.
Promoters Rights (HDFC LTD.) The Memorandum and Articles of Association of the Bank provides the following rights to HDFC Limited, promoter of the Bank:The Board shall appoint non-retiring Directors from amongst the Directors nominated by HDFC Limited with the approval of shareholders, so long as HDFC Limited and its subsidiaries, singly or jointly hold not less than 20% of the paid-up share capital of the Bank. HDFC Limited shall nominate either a part-time Chairman and the Managing Director or a full time Chairman, with the approval of the Board and the shareholders so long as HDFC Limited and its subsidiaries, singly or jointly hold not less than 20% of the paid-up share capital of the Bank.Under the terms of Bank’s organizational documents, HDFC Limited has a right to nominate two directors who are not required to retire by rotation, so long as HDFC Limited, its subsidiaries or any other company promoted by HDFC Limited either singly or in the aggregate holds not less than 20% of paid up equity share capital of the Bank. At present, the two directors so nominated by HDFC Limited are the Chairman and the Managing Director of the Bank.
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Technology:-
In the era of globalization each and every sector faced the stiff competition from their rivals. And world also converted into the flat from the globe. After the policy of liberalization and RBI initiatives to take the step for the private sector banks, more and more changes are taking the part into it. And there are create competition between the private sector banks and public sector bank. Private sector banks are today used the latest technology for the different transaction of day to day banking life. As we know that Information Technology plays the vital role in the each and every industries and gives the optimum return from the limited resources.Banks are service industries and today IT gives the innovative Technology application to Banking industries. HDFC BANK is the leader in the industries and today IT and HDFC BANK together combined they reached the sky. New technology changed the mind of the customers and changed the queue concept from the history banking transaction. Today there are different channels are available for the banking transactions.We can see that the how technology gives the best results in the below diagram. There are drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the year 2008 ( 25%). These type of technology gives the freedom to retail customers.
Centralized Processing Units Derived Economies of Scale
Electronic Straight Through Processing
Reduced Transaction Cost
Data Warehousing , CRM Improve cost efficiency, Cross sell
Innovative Technology Application Provide new or superior products
HDFC BANK is the very consistent player in the New private sector
banks. New private sector banks to withstand the competition from
public sector banks came up with innovative products and superior service.
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2009
2011
(customer initiated Transaction by Channel)
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INTRODUCTION
I did my summer internship project from HDFC BANK LTD. (Jammu). HDFC (Housing Development Finance Corporation) was the first to receive
“in principal” approval from the RBI to set up a bank in the private sector, as part of the RBI liberalization of the Indian banking industry in 1994.
It was incorporated in august 1994 in the name of “HDFC bank ltd” with its registered office in Mumbai. It commenced its operations as a commercial bank in January 1995.
The bank is headquartered in Mumbai. It has an enviable network of over 746 branches, which are spread over 329 cities across India. All branches are linked on an online real time basis.
The bank has a network of over 1647-networked ATMs across these cities. Moreover, all domestic and international Visa/Mastercard, Visa electron/Maestro, Plus/Cirus and American express credit card holders can access HDFC Bank’s ATM network.
Mr. Jagdish Capoor took over as the bank’s chairman in July 2001. pror to this; Mr. Capoor was a Deputy governor of the RBI.
The MD (managing director) of HDFC Bank is Mr. Aditya Puri. Before joining HDFC Bank; he was heading Citibank’s operations in Malaysia.
The authorized capital of the bank is 450 crore. The paid up capital is 311.9 crore.
The bank has 1,90,000 shareholders. The shares are listed on the stock exchange, Mumbai and the National Stock Exchange. The Bank’s American Depository shares are listed in the New York Exchange (NYSE) under the symbol ”HDB”
The bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers.
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← Accounts & Deposits
Savings Accounts
Regular Savings Account
SavingsMax Account
Senior Citizens Account
No Frills Account
Institutional Savings Account
Salary Accounts
Kid's Advantage Account
Pension Saving Bank Account
Family Savings Group
Current Accounts
Fixed Deposits
Regular Fixed Deposit
5 Year Tax Saving Fixed Deposit
Super Saver Facility
Sweep-in Facility
Demat Account
Safe Deposit Lockers
HDFC Recurring deposit account
← Loans
Personal Loans
Home Loans
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Two Wheeler Loans
New Car Loans
Used Car Loans
← Cards
Credit Cards:
Silver Credit Card
Gold Credit Card
Titanium Credit Card
Woman's Gold Credit Card
Platinum Plus Credit Card
Debit Cards:
ATM Card
EasyShop International Debit Card
EasyShop Gold Debit Card
EasyShop Woman's Advantage Debit Card
Prepaid Cards:
ForexPlus Card
GiftPlus Card
FoodPlus Card
Investments & Insurance
Mutual Funds
Insurance
General & Health Insurance
Mudra Gold Bar
Access Your Bank
Net Banking
InstaAlerts
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Mobile Banking
ATM
Phone Banking
Email Statements
BUSINESS MIX
Total Deposits Gross Advances Net Revenue
Retail Wholesale
HDFC Bank is a consistent player in the private sector bank and have a well balanced product and business mix in the Indian as well as overseas markets.
Customer segments (retail & wholesale) account for 84% of Net revenues (FY 2008)
Higher retail revenues partly offset by higher operating And credit
costs.
Equally well positioned to grow both segments.
.
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A Brief Intro 2 Product
We mainly have two categories of products in the bank, these are:
Asset products .
Liability products .
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And third category of products which comes under liability products is called Second Products.
Asset Products:
It includes LOANS:
Housing Loans
Two-Wheeler Loans
Personal Loans
Auto Loans
Liability products:
Savings Accounts
Savings Regular Account
Savings Max Account
Kid’s Advantage Account
Institutional Savings Account
Current Accounts
2 nd Products: The following range of 2nd products is also included in liability products.
Fixed Deposits
HSL Account
DEMAT Account
Debit Cards/ATM Cards
Credit cards
Mutual Funds Investment
Access Your Bank
Net Banking
InstaAlerts
Mobile Banking
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ATM
Phone Banking
Email Statements
Asset products of the Bank, Pricing, Documentation & Procedure:
1. Housing Loans : There are various forms come under housing loans:
o Construction loan.
o Extension loan.
o Improvement or renovation loan.
o Land loan.
o Loan against property.
o House purchase.
o Documentation:
Salary class:
Salary slip original (latest).Gross salary should be 10,000 or above.
form-16
Bank statement for last 6 months.
photo id-proof (Pan card , DoB)
Resi Proof {phone bill, electricity bill).
State subject.
1 Cheque of purchasing fee- 1%.
Property papers- .5%
Estimation cost, map passed in case of construction, Improvement and Extension purposes.
Allotment of amount is 70% of total estimated cost.
Business surrogate:
1. ITR (income tax return) for 3 years.
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2. Balance sheet, profit and loss statement, audit report.
3. form-16
4. Bank statement for last 6 months.
5. photo id-proof (Pan card , DoB)
6. Resi Proof {phone bill, electricity bill).
7. State subject.
8. 1 Cheque of purchasing fee- 1%.
9. Property papers- .5%
10. Estimation cost, map passed in case of construction, Improvement and Extension purposes.
11. Allotment of amount is 70% of total estimated cost.
Pricing or Rate of Interest:
Loan Interest rate Tenure
Construction loan. 9.75% 20yrs
Extension loan 9.75% 20yrs
Improvement or renovation loan. 9.75% 15yrs
Land loan. 13.5% 10yrs
Loan against property. 13% 10yrs
House purchase. 9.25% 20yrs
2. Personal Loans:
It is given to:
Salaried Class.
Business surrogate.
a. Salaried Class:
1) Salary slip original (latest).Gross salary should be 10,000 or above.
2) form-16
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3) Bank statement for last 6 months.
4) photo id-proof (Pan card , DoB)
5) Resi Proof {phone bill, electricity bill)
6) 1 Photograph.
7) Rate of interest is 12% flat and 21% reducing.
8) Rate of interest for doctors is 10%.
9) Processing fee for existing a/c holder is 1% and for non-a/c holders is 2%.
b. Business Surrogate:
1. ITR (income tax return) for 3 years.
2. Balance sheet, profit and loss statement, audit report.
3. form-16
4. Bank statement for last 6 months.
5. photo id-proof (Pan card , DoB)
6. Resi Proof {phone bill, electricity bill).
7. 1 Photograph.
8. Rate of interest is 12% flat and 21% reducing.
9. If sale is more than 40 lakhs then rate of interest is 10% flat and 18% reducing.
10. Processing fee for existing a/c holder is 1% and for non-a/c holders is 2%.
3. Auto Loans: It is given to:
Salaried Class.
Business surrogate.
1. Salaried Class:1. Salary slip original (latest).Gross salary should be 10,000 or above.
2. Salary credit certificate or form-16
3. Bank statement for last 6 months.
4. photo id-proof (Pan card , DoB)
5. Resi Proof {phone bill, electricity bill)
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6. 1 Photograph.
7. Rate of interest is 12% Reducing.
2. Business Surrogate:
1) Proprietorship Firm:
We need a latest ITR (Income Tax Statement) of the individual or firm. All other documents are same.
2) Partnership Firm:
a) ITR of the firm, Partnership Deed and six months latest statement of the firm.
b) If a customer is maintaining is firm’s account and saving account with and above 1lakh to 15 lakhs, then, the customer can take 100% auto loans or car loans from the bank without any documentation & with in 24 hours.
c) Rate of interest is12% Reducing. It is given to:
1. Salaried Class.
2. Business surrogate.
1. Salaried Class:
1. Deptt. ID-Proof.
2. Residence proof- voter ID card.
3. Salary slip latest
4. Bank statement- last 6 months.
5. Post dated cheques- MICR.
6. Single F-I is shooted (field investigation).
7. Advocates are not given any loan.
8. Rate of interest is 14% flat.
2. Business Surrogate:
ITR of the firm
Rest is same as salaried class.
Loan is provided after approval comes from chandigarh then 30% of actual cost + stamp duty charges + processing fee is charged as margin money.
Procedure for Loans:
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1. Calling is done.
2. CH! CH126 contains detail of AQB (average Quarterly Balance) --- which helps in tracing the target customers. AQB should up to Rs 25,000.
3. Goodwill of the company also helps in attracting the customers for loans
4. Leads are generated by sales persons or company itself provides leads to the sales persons.
5. Personal contacts of the bank officials and sales persons also help in generating leads.
6. When the file is maintained with require d formalities and documentation then it is sent for approval to the head office. If file is approved then approval comes from head office and loan is provided to the desired customer
Comparison of various accounts offered byHDFC Bank and J&K Bank
Accounts HDFC BANK J&K BANK
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Savings account
Current Account
Fixed Deposit A/C
RecurringDepositA/C
Regular Saving A/CSaving Max A/CSenior Citizen A/CNo Frills A/CKid’s Adv. A/C
Current Accounts
Regular F.D5yrs Tax Saving F.DSuper Saver FacilitySweep-in-facility
HDFC Recurring Deposit A/c
General Saving A/CStaff Saving A/cUjala Saving A/C(For BPL People)Pension Saving A/CSaving A/C For GovtCurrent AccountsGovt. Current A/C
Regular F.D5yrs Tax Saving F.DSweep-in-facility
RecurringDepositA/CRecurring Dep. Plus
HDFC BANK Min (AQB)
J&K BANK Min. Balance
Regular Saving A/CSaving Max A/CSenior Citizen A/CNo Frills A/CKid’s Adv. A/C
Current A/C
HDFC Recurring A/C
10,000
25,000
5,000
Zero BalanceMinor
10000
Min 500Max
General Saving A/CStaff Saving A/cUjala Saving A/C(For BPL )Pension Saving A/CSaving A/C For Govt
Current A/CGovt. Current A/CRecurring A/CRecurring Plus
1,000
Nil500
500
1,000
3,0003,000
Min. 500Any Amount
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HDFC BANK RATE OF Int. J&K BANK RATE OF Int.Saving Account
Fixed DepositNormal
Senior Citizen
4.5% Qutly
3 to 5 years7.75%
0.50% extra
Saving Account
Fixed DepositNormal
Senior Citizen
4.5% Qutly
3 to 5 years7.00%0.5% extra
HDFC BANK Formalities J&K BANK FormalitySaving A/C
Current A/C
ID ProofAddress Proof1 Photograph10,000 Rs
ID ProofAddress Proof1 PhotographFirm Proof
10,000 Rs
Saving A/C
Current A/C
ID ProofAddress Proof2 hotographWitness of bank customer1,000 Rs
ID ProofAddress Proof2PhotographFirm Proof
WitnessPAN card3,000 Rs
HDFC BANK Facilities J&K BANK Facilities
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Saving A/C
Current A/C
Debit CardAnnual fee 100Withdrawal 20000
Gold CardAnnual fee 500Withdrawal 50000Net BankingPhone BankingInsta AlertsAll Above With Cheque book and free statements
Saving A/C
Current A/C
Debit CardAnnual fee 100Withdrawal 25000
Cheque Book
HDFC BANK BRANCHES J&K BANK BRANCHESJammu
Kashmir
8
3
Jammu
Kashmir
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Objectives of the Research
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To know the products of the bank their documentation and market place.
To analyse which products is most preferred by the customers. To know the most preferred financial institution by the customers to Finance. To study the various factors affecting while taking different products
of the bank. To check the behavior of the bank officials and customer satisfaction
level in regard to the bank services. To know the work culture and environment of the banking sector. To learn the skills to manage the working of the bank. To know about the managerial skills of the bank manager to deal
with the bank employees and customers of the bank.
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Research Methodology
46
Research Methodology is a science of studying how research is done scientifically. It is way to systematically solve the research problem by logically adopting various steps. Methodology helps to understand not only the products but the process itself. It aims to describe and analyse methods, through light on their limitations and procedures and resources, clarify their presuppositions and potentialities to the twilight zone at the ‘frontiers of knowledge’.Research is an art of scientific investigation. It is the systematic investigation on order to find out facts and solution of a particular problem. It is the “Search for Knowledge” By adopting proper method of research we can easily find our Solution and can achieve our objectives easily. Research methodology is the systematic way to solve the research problem. This research methodology has helped in assessing the finding & result for this purpose a let of information was needed.
Research Design
The mode of the research was the exploratory i.e goal oriented or target oriented.Sample Size 200Collection of dataPrimary data:Pry. Data is collected through personal interviews, questionnaires, telephonic conversations, by doing swot analysis.A survey was conducted on the different categories of people to study the level of awareness of products and schemes offered by the bank.The main research instrument with the help of which survey was undertaken was questionnaire. The questionnaire contains a set of open-end questions through which information was collected. A sample of 200 people was taken to conduct the survey. The people belong to different occupations.
Occupation Percentage Businessman 20%Service class 45%
Professionals 35%
SWOT ANALYSIS
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STRENGHTS :
It has an extensive distribution network comprising of 319 branches in 166 cities & one international office in Dubai this provides a competitive edge over the competitions.
The Bank has a strong retail depository base & has more than million customers.
Bank boasts of strong brand equity. ISO 9001 certification for its depository & custody operations & for its
backend processing of retail operation & direct banking operation. The bank has a near competitive edge in area of operations. The bank has a market leader in cash settlement service for the major
stock exchanges in its country. HDFC Bank is one of the largest private sector bank working in India. It has a highly automated environment in terms of information
technology & communication system. Infrastructure is best. It has many innovative products like kids Advantage scheme, NRI
services.
WEAKNESS :
Account opening and delivery of cheque book take comparatively more time.
Lack of availability of different credit products like CC Limit, Bill discounting facilities.
OPPORTUNITY :
Branch expansion Door step services Greater liberalization in foreign ownership via FDI in Indian Pvt. Sector
Banks. CC/ OF Facilities. Infrastructure improvements & better systems for trading & settlement in
the govt. securities & foreign exchange markets.
THREATS:
The bank has started facing competition from players like SBI, PNB Bank in the finance market itself. This reduce the profit margins in the future.
Some Pvt. Banks have 7 days banking
DATA ANALYSIS
48
The persons contacted belonging to different occupations:
Business class – 20%
Service class – 40%
Professionals – 35%
Reasons for unawareness of new products or schemes of the bank
49
QUESTIONNAIRE BASED ANALYSIS
50
1. Are you having an bank account?
a) yes
b) No
Interpretation:-
Out of 200 people 68% have an bank account and 32% people have not an
bank account.
2. From which bank you have account?
a) HDFC Bank
b) J&K bank
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c) Others
Interpretation:-
Out of 200 people 17% have an HDFC bank account,54% have an J&K bank
acount and 29% people have an others bank account
3. Which Bank would you rate the best?
a) HDFC Bank
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b) J&K Bank
Interpretation:-
Out of 200 people 41% said that HDFC have an the best bank rate and
59% people said that J&K have an the best bank rate
4. In which company are you looking to invest?
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a) HDFC Bank
b) J&K bank
c) Others
Interpretation:-
Out of 200 people 32% invest in HDFC bank , 42% people invest in J&K
bank and26% people invest in others bank.
5. Which Bank that is giving a good return to you?
a) HDFC Bank
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b) J&K Bank
Interpretation:-
Out of 200 people 47% said that HDFC have giving good return and 53%
people said that J&K have giving good return.
6. Which Bank provides you quick and efficient services?
a) HDFC Bank
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b) J&K Bank
Interpretation:-
Out of 200 people 62% said that HDFC provides quick and efficient
services and 38% people said that J&K quick and efficient services.
7. You satisfied in dealing with which bank officials?
a) HDFC Bank
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b) J&K Bank
Interpretation:-
Out of 200 people 36% satisfied with dealing of HDFC bank and 64%
people satisfied with dealing of j&k bank.
8. If get an opportunity in future would you like to be getting attached with
HDFC Bank?
a. Yes
b. No
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Interpretation:-
Out of 200 people 23% attached with HDFC bank rate and 77% people
Does not attached with HDFC bank .
9. Which Bank provided you a Bank account with minimum balance?
a) HDFC Bank
b) J&K Bank
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Interpretation:-
Out of 200 people 29% said that HDFC bank provide bank account with
minimum balance and 71% people said that j&k bank provide bank
account with minimum balance.
10. Do you know about these products of the banking industry?
a) Savings a/c yes/No
b) Fixed deposits yes/No
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c) current a/c yes/No
d) de-mat a/c yes/No
e) credit cards yes/No
f) insurances yes/No
g) mutual funds yes/No
h) Loans yes/No
Interpretation:-
Out of 200 people 15% know about saving account,40% fixed deposits,5%
current a/c,5% de-mat a/c,5% credit cards, 10% insurances,15% mutual
funds and5% loans.
11. Which of these products are you using?
a) savings a/c yes/No
b) fixed deposits yes/No
c) current a/c yes/No
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d) de-mat a/c yes/No
e) credit cards yes/No
f) insurances yes/No
g) mutual funds yes/No
h) Loans yes/No
Interpretation:-
Out of 200 people 15% have saving account,24%have fixed deposits,5%
have current a/c,10% have de-mat a/c,5% have credit cards, 19%have
insurances,20% have mutual funds and2% have loans.
12. Which Bank provides various innovative schemes to you?
a) HDFC Bank
b) J&K Bank
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Interpretation:-
Out of 200 people 38% said that HDFC provide innovative schemes and
62% people said that j&k bank provide innovative schemes.
13. Which Bank charges higher penalty from you when the balance of your account
goes down from minimum limit?
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a) Private sector banks
b) Public sector banks
Interpretation:-
Out of public and private bank through 200 people 39% people said public
sectors bank charges high penalty and 61% people said private sectors bank
charges high penalty.
14. Which Bank is available to you in nearest location?
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a) HDFC Bank
b) J&K Bank
Interpretation:-
Out of 200 people 15% said that HDFC bank is nearest and 59% people
said that J&K bank is nearest to them.
15. Which Bank has more formalities while opening an account?
a) HDFC Bank
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b)J&K Bank
Interpretation:-
Out of 200 people 62% said that HDFC bank has more formalities while
opening a/c and 38% people said that J&K bank has more formalities
while opening a/c.
16. Are you satisfied with the services of the bank in which you deal presently?
a) Yes
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b) NO
Interpretation:-
Out of 200 people 40% are satisfied with HDFCt bank services and 60%
people are not satisfied with HDFCt bank services.
17. The customer of which Bank is more aware about the various schemes of the
Bank?
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a) HDFC Bank
b) J&K Bank
Interpretation:-
Out of 200 people 59% customers are aware from HDFC bank various
schemes and 41% customers are aware from j&k bank various schemes.
FINDINGS
It has been found that the person will invest in the various products and schemes of the bank only when he is having discriminatory income / surplus money.
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Businessman rarely invests in the deposit schemes b’coz he would like to invest in his business to purchase more stock or to expand his business if he has surplus money.
I have also found that most of the people like to go for fixed deposit schemes, mutual fund investment schemes.
Persons having fixed monthly salary such as service-class employees, Govt. employees, professionals like Doctors, Teachers quite invest their savings in the deposit schemes so as to multiply their savings.
Indian banking industry is no longer an isolated entity. It is increasingly being affected by dynamic and highly competed global banking environment. Banks not only have to reduce cost but also have to design innovative strategy.
Asset products like loans are getting least preference by the customers due to higher interest rates and cumbersome procedure.
A visit was made to some main branches; it was found that these schemes couldn’t get due publicity or promotion at branches.
Only a pamphlet is available which is given only to those who visit the bank to know about various schemes.
It has been observed that people are unaware of new schemes and they keep on investing in the old schemes only.
When asked the people about the reason behind unawareness:- 80% of the people say that the unawareness is due to lack of proper
advertisement.- 10% say that unawareness is due to the indifference of the bank officials.
The bank officials attend their friends and relatives better than to the ordinary persons.
- 10% say unawareness is due to difficult access to bank officials as most of the time the bank officials remain busy. They don’t have time for ordinary persons, so a person is unable to know about the latest products or schemes offered by the bank.
LIMITATIONS
Selling a product is not that much easy as we think. There are certain hurdles that come in our way while selling a product. These are as follows:
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1. Customers are very busy and have no time to attend the call.2. Limited access to phone lines.3. Lack of comprehensive information of the bank’s products for the trainees.4. Change of contact numbers of customers.5. Interest rates on saving a/c’s, FD’s, is very low as compared to other banks.6. Preferred customers know much about the products and it is very difficult to
cross sell.7. Strict documentation.8. Complexity of banking procedures like:
a) In case of mutual funds investment schemes PAN card is mandatory and some customers are not having PAN card.
b) In case of credit cards there is a centralized eligibility criterion for all the customers.
Also in case of credit cards, the customers have been segmented on the basis of their profession, e.g.: transporters, lawyers, defense personnel and persons in legal and political ambit are not eligible for credit cards.
9. Market is at risk now a days, so not everyone is willing to invest money in mutual fund investment schemes.
10. It is very difficult to open saving max a/c b’coz in saving max a/c customer is required to maintain a balance of Rs.25,000 and that’s not possible for the middle class people which comprises maximum percentage of our population and who saves just 10-20% of their income…
Suggestions
Provided more interest rate on saving, fixed deposit, recurring deposit accounts as compare to others banks
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Account should be open with minimum amount for people belong to BPL Processing time and charges should be less. Easy and quick accessibility of information should be there. More branches should be opened. Reduction in interest rates for loans and over charges. At the time of providing loans bank should have less terms and conditions. Bank should try to aim at providing better services to the customers. Bank should also adopt latest trends for advertising of their products Bank officials should improve their work behavior and they should maintain
sound relations with their customers.
Learning
In training period of two months in HDFC Bank various tasks were assigned to me by the organization, which are part of day to day functioning of the departments within the organization.
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Executive training gives flavor of: Teamwork: working with my company guide and my mentor I experienced
the true meaning of working in a team. Organizational culture: in the banking world undoubtedly organizational
culture is much disciplined. Team dynamics: to face the variable environment around. Result orientation: how to manage failure and success. Organizational pressures: the pressure of completion of target in a given
time. Complexities in achieving the desired results etc.Executive training provides a good scope for developing the necessary managerial skills and provide attitude.
During the training period, I learnt: How to deal with the customers for selling the products of the bank. How to generate need and convince them for purchasing the products of the
bank. How to make them believe that the products are going to give them
handsome returns. How to make them agree to take out their hard earned money and invest in
our products. How the product of one Bank is differ from the other banks. Difference between the products offered by private banks and public banks.
And, I was assigned with the target to give business to the bank:o By opening the accounts worth 50,000.o By selling 20 credit cards.o By selling mutual fund investment schemes worth Rs.50,000
BIBLIOGRAPHY
www.bnknetindia/com/banking/financehttp://en.wikipedia.org/wiki/bankingfinancialcompany
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www.hdfcbank.comwww.hdfcbank/products/finance www.google.com www.bing.comBank brochures and product folders.
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QUESTIONNAIRES
Name:-Age:-Designation:-Annual income:-Gender: - male/femaleContact No: - …………………… (Mob)
……………………. (Resi)
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……………………. (Off)1. Are you having an bank account? a) yes
b) No
2. From which bank you have account?
a) HDFC Bank
b) J&K bank
c) Others
3. Which Bank would you rate the best?
a)HDFC Bank
b)J&K Bank
4. In which company are you looking to invest?
a) HDFC Bank
b) J&K bank
c) Others
5. Which Bank that is giving a good return to you? a) HDFC Bank
b) J&K Bank
6. Which Bank provides you quick and efficient services? a) HDFC Bank
b) J&K Bank
7. You satisfied in dealing with which bank officials?
a) HDFC Bank b) J&K Bank
8. If get an opportunity in future would you like to be getting attached with HDFC Bank?
a.)Yes
b) No
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9. Which Bank provided you a Bank account with minimum balance?
a) HDFC Bank
b) J&K Bank
10. Which Bank provides various innovative schemes to you?
a) HDFC Bank
b) J&K Bank
11. Do you know about these products of the banking industry?
a) Savings a/c yes/No
b) Fixed deposits yes/No
c) current a/c yes/No
d) de-mat a/c yes/No
e) credit cards yes/No
f)insurances yes/No
g) mutual funds yes/No
h) Loans yes/No
12. Which of these products are you using?
a) savings a/c yes/No
b) fixed deposits yes/No
c) current a/c yes/No
d) de-mat a/c yes/No
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e) credit cards yes/No
f)insurances yes/No
g) mutual funds yes/No
h) Loans yes/No
13. Which Bank provides various innovative schemes to you?
a) HDFC Bank
b) J&K Bank
14. Which Bank charges higher penalty from you when the balance of your account goes down from minimum limit?
a) Private sector banks
b) Public sector banks
15. Which Bank is available to you in nearest location? a) HDFC Bank
b) J&K Bank
16. Which Bank has more formalities while opening an account?
a) HDFC Bank
b) J&K Bank
17. Are you satisfied with the services of the bank in which you deal presently?
a) Yes
b) NO
18. The customer of which Bank is more aware about the various schemes of the Bank?
a) HDFC Bank
b) J&K Bank
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1. Any suggestions:-………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
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